E Factor Experie (EFACTOR)

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• ROCE of 37.96% indicates strong capital efficiency and a potentially good business model
• Promoter holding of 69.56% aligns management interests with minority shareholders
• Piotroski F-Score of 7/9 suggests improving financial fundamentals
• P/E of 12.31 is low relative to reported profit growth, implying value if growth sustains

Concerns

• Book value and P/B are not available, limiting ability to assess balance sheet risk or margin of safety
• Extreme profit growth of 1000% and sales growth of 190% may be unsustainable or one-off in nature
• Dividend yield of 0.51% offers minimal downside protection for a value investor
• Small market cap of ₹308 Cr and high price volatility (₹150-₹348 range) add execution and liquidity risk

AI Analysis

Let's look at E Factor Experie through a Graham-Buffett lens. The first thing that jumps out is the growth: sales up 190% and profits up 1000%. That kind of momentum is exciting, but it also demands skepticism. Is this a durable business or a cyclical spike? The latest quarter shows sales of ₹53 Cr and net profit of ₹5 Cr — a roughly 9.4% net margin, not spectacular but decent. The return on capital employed of 37.96% is excellent; it suggests the business is generating strong earnings relative to the capital tied up in operations. That is a quality signal, and the Piotroski F-Score of 7/9 supports the idea of improving financial health. Promoter holding is very high at 69.56%, which aligns interests with minority shareholders — something I admire. However, I am concerned about the lack of book value and P/B data. I cannot assess the balance sheet strength or the margin of safety Graham would insist on. A P/E of 12.31 looks cheap, but with a PEG of 0.02, the market is pricing in either explosive future growth or a mean-reversion trap. The dividend yield is negligible at 0.51%, so this is a compounding story, not an income story. The 52-week range of ₹150 to ₹348 shows volatility; current price is below the midpoint. Overall, this is a fast-growing consumer services business with strong return on capital and high promoter skin in the game, but the absence of book value data and the extreme growth rates make me wary. I would need to understand the durability of the growth and the balance sheet before committing significant capital. The price may be reasonable, but the uncertainty is high.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer